American shale gas producer Chesapeake Energy has agreed to sell its Brazos Valley acreage in the Eagle Ford Shale in Texas to WildFire Energy, in a deal worth $1.425bn.
The transaction includes the sale of nearly 377,000 net acres and close to 1,350 wells, in addition to associated property, plants, and equipment.
During Q3 2022, the average net daily production from the properties considered for sale was approximately 27,700 barrels of oil equivalent (boe), of which 85% was liquids.
As of 31 December 2021, these assets had net proved reserves of nearly 96.8 million barrels of oil equivalent (Mboe).
Chesapeake Energy president and CEO Nick Dell’Osso said: “Today marks an important step on our path to exiting the Eagle Ford as we focus our capital on the premium, rock, returns, and runway of our Marcellus and Haynesville positions.
“We remain actively engaged with other parties regarding the rest of our Eagle Ford position.”
With the acquisition, WildFire is expected to increase its portfolio in the eastern Eagle Ford to nearly 2,000 gross wells on approximately 600,000 net acres.
The company’s acreage covers the Burleson, Robertson, Brazos, Madison, Washington, Lee, and Grimes counties of Texas.
WildFire Energy president and COO Steve Habachy said: “This acquisition is highly synergistic with our existing assets and the combined size of the overall business positions WildFire Energy as a leading operator in the Eastern Eagle Ford basin.
“The consolidation of 600,000 contiguous acres is transformative to the business and will drive economies of scale to deliver more high margin barrels to the advantageous Gulf Coast market.”
The transaction is planned to be closed in the first quarter of 2023.